A software development company’s life may be the shortest amongst all industries. They are in constant competition with one another to get their product into the market first and to establish a foothold there. The factor that may contribute to this is the decline of “innovation”.
What is Innovation?
Innovation is nothing but improvement or invention. It can also be defined as something that introduces change and new ideas, which captures the imagination and benefits society. This can be achieved by developing products and services that truly satisfy customer needs, and that have some distinctive quality.
Why is Innovation Important?
For a software development company to survive long in the market, innovation is a key factor. It improves confidence among customers and will keep them loyal to your brand or product. It will also give an edge over your competitors, since it will help you to get ahead in the race and this may result in more customers buying your product or using your service. Thus, in order to create an impact on the minds of your consumers you need to come up with innovative ideas or processes that add value to their lives.
7 Ways to Make Your Software Development Company Lifespan Longer
Here are 7 ways to make your software development company lifespan longer.
1. Your Employees Should Be Empowered and Engaged With Their Jobs!
The companies that have an employee satisfaction rate of more than 74% are the ones that are still in business today. During employee engagement surveys, it was found that employees who were satisfied with their jobs were 6 times more likely to stay with the company for a longer period of time. Moreover, almost half of these employees said they would recommend their employer as a great place to work!
2. Involve Employees In Making Product And Service Decisions
It is very important to involve your employees in making product and service decisions, as they have a better understanding of the customers’ needs and expectations. This will help you to create products with greater value for the customers, which will result in an increase in sales.
3. To Build Up A Strong And Maintainable Relationship With The Customers
The key to building up a strong and maintainable relationship with your customers is building a relationship that goes beyond just monetary transactions. For this, you can follow effective processes such as:
– Get to know your customer’s business model in great detail so that you are able to build products that are tailored specifically for them.
– Have regular conversations with your customer and keep them updated on the progress of your project.
– Share with them what kind of expertise you have in your company; this will help you build a strong relationship of trust.
4. Invest In Technology That Makes Your Business More Profitable And Less Expensive To Run
Technology, especially in the field that you work, is constantly changing and evolving. This means that to remain competitive, it is very important to invest in technology that makes your business more profitable and less expensive to run. For example, software development companies need to invest in technology that helps develop software products faster and with fewer errors. This can be done by using modern tools and processes, such as agile software development.
5. Build A Customer Base That Has Low Churn Rate And High Lifetime Value
In an interview with Steve Blank, he mentioned about how the company Zappos managed to have a low churn rate and high lifetime value – which are both very important factors that will help to lengthen lifespan of a software development company. They follow the policy of “delivering happiness” to their customers through excellent service. They offer a 365-day return policy on any purchase (which is a really bold step), so that the customer will feel more confident when they are purchasing from them. This policy has helped them to have a retention rate of over 98% and a lifetime value of more than $12 billion.
6. Decide On The Right Pricing Strategy For Your Products & Services
For your products and services to be successful, you have to invest in the right pricing strategy for them. A pricing strategy is choosing the right price that will enable you to maximize your revenue, while at the same time maximizing your customer’s satisfaction with your product or service. When pricing strategy is well implemented, it helps to increase sales and customer satisfaction.
7. Invest In Training Your Employees On How To Utilize The Product
It is important to invest in training your employees on how to utilize the product or service that you are selling. This will help them to achieve their goals and objectives in a better way than before. This will also increase customer loyalty, because the employees will love their jobs when they are able to use the product well. For this, it is vital for them to train themselves and one way of doing this is by keeping up with any improvements on the product that has been made.